REF: MR/CIR/2019/1817 November 16, 2019
To Members of the Council
SUB: Inviting data/information for the new proposed Scheme for Remission of Duties and Taxes on Exported products (RoDTEP)
As you are aware, a scheme to refund certain un-refunded taxes or duties [levied at the State and Central level], was notified by the Ministry of Textiles for the readymade garment and made-ups in March 2019 (Rebate of State and Central Taxes and Levies- RoSCTL). The Government is now contemplating to formulate a new Scheme to cover other export sectors also under a similar framework called Scheme for Remission of Duties and Taxes on Exported products (RoDTEP) to refund of these un-refunded taxes or duties/ levies , not exempted or rebated at present by any other mechanism. The contours of the proposed new Scheme for Remission of Duties and Taxes on Exported products (RoDTEP) are being detailed out and the competent authority.
In this regard, DGFT has advised the Council to seek the data in the prescribed formats from the members of the industry/ firms/ exporters with respect to un-rebated taxes/ duties/levies used in the manufacture of export product(s)in the prescribed formats, which are attached.
There are 3 formats/ proformas (R1, R2, R3) which are required to be filled separately for each export product by a manufacturing/ exporting unit. After receipt of the desired data this Council shall compile information received from member exporters/firms and submit it to jurisdictional sectoral RoDTEP Committee(s) in DGFT Hqrs, along with recommendations.
While filling the information in the specified formats, Members of industry may ensure the following -
a) Data provided should mandatorily be based on the exports made during the period January to June 2019.
b) Information may kindly be submitted by manufacturers/ manufacturer exporters for every export product individually in a separate file/document in all three proformas/ formats i.e. R1, R2 and R3. Data relating to DTA Unit and / or SEZ unit/ EOU/ FTWZ/ Warehouse under section 65 of the Customs Act, as the case may be, needs to be filed separately for each such unit.
c) A list of indicative taxes which should be counted for estimating the non reimbursed/ non refunded tax incidence is annexed with the prescribed formats. Generally used UQC Codes have also been annexed for reference. It may be ensured that only taxes/ levies/ duties borne on the exported product which are at present not getting refunded/ reimbursed under any other mechanism are counted while calculating the tax incidence on the exported product.
d) The incidence of Central Excise duty/customs duty suffered on account of petroleum products being used as inputs (raw materials) in the manufacturing process and the incidence of GST for any product should not be included for calculation of total incidence of duties.
e) Data provided should be from manufacturers/manufacturer exporters and it should be properly scrutinized and certified by the manufacturer/ manufacturer exporter and their Chartered Accountant/Cost Accountant.
f) While forwarding the recommendations on each HS code/export product, the EPCs/ industry bodies need to ensure that information from at least five units/ firms are included so as to be representative of the industry. The units should have a representation of the small, medium as well as large manufacturer exporters.
g) The data should be supported by relevant documents such as sample Shipping Bills of export and other relevant other documents forming the basis of calculation, such as Mandi Tax rate circular, Electricity Duty circular of the respective state and should have proper justifications for recommended tax incidence.
h) The data provided should pertain to only those manufacturers/units who agree to have their records and production processes inspected by the Government for the purpose of verification. Verification of data/ processes would be undertaken by DGFT, if required.